What Is Fraud Protection?
Fraud Protection is specialized software and hardware complexes that provide monitoring, detection and control of the level of fraud. Systems are oriented primarily for banks, telecom operators, payment systems. With the help of ecommerce fraud protection is possibility of keeping the business safe from the Internet scams. Nowadays using fraud protection services become more crucial and demanded among Internet users.
Relevance of the problem
As it is shown by numerous studies, the volumes and incomes of e-commerce are constantly growing on a global scale. It is predicted that the greatest breakthrough will be shown in such locations as Europe and Asia. In its turn the level of fraud is growing in the same progression or even faster. The number of fraud cases increased by 19% compared to 2013, and it is the fourth consecutive year, when fraud growth exceeds the growth of e-commerce. Out of every $100 in turnover, scammers are currently stealing 5.7 cents. However, fraud is not only related to payments on credit cards. Scammers are becoming more sophisticated in using different kinds of software to manage online banking accounts through gadgets, phones and computers.
Types of Fraud
There are different types of fraud like phishing, pharming and so on. However let’s concentrate more on that type that have deal with business not only on data theft. The bright examples are friendly fraud, affiliate fraud and merchant fraud. Friendly fraud sounds more friendly than it is actually is. It means that customer order the good or the service and pay for it in most cases by credit card. However, then he or she initiates a refund, claiming that sum of money from credit card was stolen. In most cases money was reimbursed even if the customer has already gotten the purchased good or provided service. This method of fraud is especially common with services such as gambling (casino, etc.). Friendly fraud is also carried out in combination with re-shipping. The next one is affiliate fraud. It could be fulfilled by real person who uses fictitious accounts or could be fully automated process. This type of fraud is neutral in terms of risks for payment methods, but it is extremely widespread. Merchant fraud is another method of fraud, which should be also mentioned. The scheme of it is really famous and simple. The goods are offered at low and luring prices, but they are never delivered. This method of fraud exists also in wholesale.
Advantages of fraud detect
Any financial institution tends to have possibility to encounter fraud. According to the USA statistics, there are thousands of cases when organizations lost more than billions dollars annually because of the fraud. Banks and insurance companies are at the greatest risk of fraud and extortion. The thing is that fraud prevention services will save personal business from fraud in the Internet. Furthermore, avoid stealing money from account with the card fraud detection. Key role is played by historical data during the fraud website detection. Data could help to identify perpetrators of fraudulent activities. Online fraud detection demands the identification of evaluated subject for the timely detection of fraudulent activities. Being aware of everything what is happening, it is easier to be one step ahead. The earlier the fraud will be found, the better customer will protect himself.
Ecommerce Fraud Protection tools
The vast majority of different services impressed and puzzled. It is really controversial issue to find the best and the most suitable. Pay attention to alfaprotection.com. It features numerous fraud prevention solutions, like Risk Score, API and Extensions, Rule Engine, Black List and Country Rules. Risk Score will predict the probability of fraud risks and find the location from where it comes from. The extension API allows achieving deeper integration with any browser host. Free powerful extension for popular eCommerce CMS systems as well as simple Rest API. As far as Rule engine goes, this tool lets to put in action the validation rules for your business. The last but not the least is Black Lists and Country Rules, these functions check the requests and calculate high-risk countries.
Alfa Protection provides with wide diversity of services for reasonable prices. For instance, 500 requests per month cost only 14$ plus thirty days free trial period. The way how much customer is ready to pay for fraud prevention services depends on him or her. It is possible to order from 500 to 10 000 requests per month. The pricing system is pretty straightforward and transparent. Basic package allows to check 2000 requests for month for 49$ per month. Standart package provide with 5000 requests per month for 159$. Finally, Alpha protection for 10000 requests per month suggests a discount, instead of 259$ it is available to pay only 199$. By the way, Stadart and Premium packages offer wider range of services than Basic and Start one. They include Multi users and permissions, Presets rules, VIP-support, Country rules, Additional Verification by SMS and Two-Factor Authorization. The list of services is considered to be in miles wider in
comparison with in FraudLabs Pro. Customer could provide the payment, in any convenient way,
through PayPal, Skrill, Bitcoin, Visa, MasterCard etc.
Recently it became generally known that one of the largest payment companies, Western Union, suffered from fraud. The company was fined for $ 586 million for ignoring the use of these services for criminal purposes, namely for money laundering and online fraud. The company allowed to process transactions, although they had signs of concealment from the authorities. With the help of Western Union, Chinese immigrants sent hundreds of millions of dollars to pay smugglers involved in the transportation of people. Also scammers have deceived thousands of people in the US, offering the rewards and employment. Western Union agents were responsible for processing these payments and they had an appropriate interest from them.
To sum up, monitoring fraudulent transactions is indispensable need for modern realities of e-commerce. For the bank, the costs of supporting and developing an anti-fraud system costs an arm and a leg. For small and medium businesses, the development of its own antifraud is an unbearable and non-paying project. Requirements for such mechanisms are growing every year, they learn to more subtly handle the information received, taking into account statistics and behavioral factors. The main advantages of the best fraud protection service, as Alpha Protection, are: increase the level of customer confidence and competitiveness, exclusion of unreliable business partners etc. Ecommerce fraud prevention tools provide analysis of various types of danger that could carry out fraudulent activities, for instance, devices or individuals. Prevention is better than cure. Not only it will discover a lot of dangerous pitfalls, but also warn about unexpected occasions. Do not hesitate to try online fraud protection for business and it exceeds expectations.